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Demonstration System by means of certain other written agreements, <br />including this Agreement, between COLTON and SAN BERNARDINO on the <br />one hand, and SAWPA on the other. <br />C. The COORDINATED AGREEMENT provides for a two-phase <br />implementation of the Demonstration System described therein. The <br />purpose of this Agreement is to implement Phase II described in the <br />COORDINATED AGREEMENT by, among other things, authorizing SAWPA to <br />enter into an Operations and Maintenance Agreement with SAN <br />BERNARDINO. COLTON and SAN BERNARDINO have found and determined. <br />that it is mutually beneficial to delegate the responsibilities of <br />administration of the Demonstration System to SAWPA, subject to the <br />direction and control of the Board of Control established pursuant <br />to the COORDINATED AGREEMENT, and the purpose of this Agreement is <br />to provide the terms and conditions by which SAWPA shall administer <br />the Demonstration System for the benefit of COLTON and SAN <br />BERNARDINO. <br />COVENANTS <br />NOW, THEREFORE, based upon the foregoing, and in consideration <br />of the mutual promises of the PARTIES, it is hereby agreed as <br />follows: <br />1. Incorporation of Recitals and Related Agreement. The <br />foregoing recitals, and each of them, and the related agreement <br />referred to in Recital "A" are hereby incorporated into this <br />Agreement as through set forth in full. <br />2 <br />